Key Points:
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Gov. Katie Hobbs’ nominee for director of the Office of Economic Opportunity resigned Aug. 22
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Carlos Contreras had served at OEO for over two years but did not receive Senate confirmation before his nomination expired
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Republican Sen. Jake Hoffman said Contreras’ relationship with labor unions and prioritization of “DEI” criteria made him unconfirmable
Gov. Katie Hobbs lost another director nominee after the Senate failed to confirm her appointment before his term expired.
Carlos Contreras at the Office of Economic Opportunity resigned last week, according to Hobbs’ spokesman Christian Slater. Contreras had been serving in the role since June 2023, leading an office responsible for workforce development and economic research for the state.
Contreras was officially nominated to the director position on Aug. 29, 2024, after a court battle between Hobbs and the Senate over the director nominations process. He is unable to continue serving because he did not receive Senate approval within one year of his nomination.
“As she has done from day one of her administration, Governor Hobbs will select qualified appointees who can deliver the services Arizonans rely on and further opportunity, security and freedom for communities across the state,” Slater said in a statement.
Hobbs thanked Contreras for his leadership in her own statement posted to the Office of Economic Opportunity’s website.
“In leading the Office of Economic Opportunity, Carlos rolled up his sleeves, fostered partnerships across the state, and helped build more pathways to prosperity for the people of Arizona,” Hobbs said.
Under state law, director nominees are only able to serve up to one year without being confirmed by the Senate. Contreras appeared before the Senate Director Nominations Committee once during the 2025 legislative session, but a vote was not taken on his nomination before the Legislature adjourned in June.
Sen. Jake Hoffman, the chair of the DINO Committee, told the Arizona Capitol Times in July that Contreras did not have the votes to get his nomination confirmed by the committee or the full Senate due to his close relationship with labor unions. During Contreras’ confirmation hearing in May, Hoffman accused him of discrimination for awarding grants to groups affiliated with labor unions and prioritizing programs that used diversity, equity and inclusion policies to award apprenticeships.
“This latest resignation serves as further evidence that the Senate Committee on Director Nominations is working as intended and that overly partisan, unqualified nominees, and those with ulterior motives are being held accountable,” Hoffman said in a statement on Aug. 28. “As has occurred in virtually every other case, I expect the next nominee for this position to be a more nonpartisan, service-focused individual who will faithfully serve the people of this state.”
Contreras’ nomination is not the first that the Senate has let expire. Liz Archuleta, one of Hobbs’ nominees to the Arizona Board of Regents, did not receive a hearing within a year of her appointment and was forced to step down in April.
Archuleta’s nomination was assigned to the Senate Education Committee, chaired by Sen. David Farnsworth, R-Mesa. Farnsworth never provided an explanation for not holding a confirmation hearing for Archuleta.
Hobbs’ office also did not respond to questions about whether interim directors currently serving at other state agencies who lost their directors to the DINO process this session will be sent to the Senate for consideration.
Five agencies currently have interim directors who were previously working as deputy or assistant directors in their departments. Those five agencies — the Department of Health Services, the Arizona Health Care Cost Containment System, the Office of Tourism, the Department of Housing, and the Department of Insurance and Financial Institutions — all lost their director nominees within the past year.
Most recently, Kristen Challacombe and Maria Ailor were made interim directors of AHCCCS and DIFI, respectively. Sheila Sjolander and Ruby Dhillon-Williams have been serving as interim directors at ADHS and the Housing Department since the spring, while Alix Skelpsa Ridgway has served as the interim director at the Office of Tourism since last December.
At least one other director, Karen Peters at the Department of Environmental Quality, could be in jeopardy in the 2026 legislative session. Peters’ nomination will expire in February and, although she was approved by the DINO committee in May, she did not receive a full Senate vote before the Legislature adjourned.
“I’d say it’s a toss up, and kind of anyone’s guess whether she’ll have the votes to move forward come January, February,” Hoffman said.
Hobbs’ spokesman did not respond to a question about who will replace Contreras, but the OEO website said Hobbs will announce the next director soon.